GM announced this week that they were paying back the government's load early. It almost sounded like they have made so much money lately that they have enough cash on hand to give back the money. Problem is, this was just a major public relations stunt by the company. The money given back is our money that was never used. It was kept in reserves. One has to wonder whether or not GM really was that desperate for money or that they did not know how to operate without the money for all the luxuries they were used to in their executive suit. I still think this is a loser company with limited brand value and no credibility. Their recent move to try to scam the public proves it. Senator Durbin even said that this was tantamount to a shell game. GM claims to be making a profit, which is likely is. They have cut so much cost from their system that any sales now will add profits.
Ford, on the other hand, seems to be doing well. Their sales are up in real terms and they are gaining market share--not just getting back what they had. Ford took a gamble several years ago to move toward environmentally friendly cars. William Ford was the CEO at the time and the board actually threatened him to back off the "environmental nonsense". Detroit has never really understood or appreciated more environmentally friendly cars. They always seem to serve the market and never try to lead or hit the leading edge of change--they have left that to the Japanese and Germans.
Ford has well designed cars, they are operating efficiently and they are also the only US car company that did not take government money, which I believe has endeared them to many consumers.
Chrysler is done--stick a fork in it. This is a company with no focus, no brand value and no strategy. They are sucking up cash and losing market share while the other companies have their best months in years. When you loose 8% share while others are increasing sales by 15-18% in a given month, something is very wrong. Say goodbye to our loan. Chrysler will be a footnote in history, alongside Studabaker, DeSota, and other companies that have failed in the past.
Toyota is having great sales, thanks to 0% interest for 5-years. They have to move 2010 inventory and also stimulate the 2011 sales since inventory has started piling up on the dealer lots. Some people have joked that we now know what it takes to convince someone to drive a "death trap". I don't see it that way. The sales incentives were expected, given the situation and the need to clear inventory. I think what we are seeing is deep loyalty and belief in Toyota. The company has lead for so long in price-quality that it has build some inertia in its brand. If there are new problems in new cars being bought, then we will see real brand erosion and long-term problems for the company
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3 comments:
Every time I see a GMC vehicle I cringe. I think of the type of person who buys that car and shows it off. I think about the type of people running that company. And I think about what that brand means to me. All of these thoughts are 100% negative.
They stand for all of the wost American attributes; narcissism, closed mindedness and lack of innovation.
Even after all of the issues they still advertise for "Hemi power". Or instead of having positive ads they try to pull the rug out from under the competition almost coming off as slanderous. The major problem with that is, they have no competition other than themselves.
ford will became the second-biggest seller of autos in the United States for their cars and quality, just for some months before Toyota is the one of the best cars in united states but as their recall wide spread, almost Toyota's every model comes into the recall row. and i hope Toyota story teched many of the automakers a good lesson which reflect in their upcoming models
Georgia Drivers Ed
Well, I do think Toyota is doing well in their sales. I talked to some used car dealers in Orange County when I was car hunting in LA last season. I consider that many people are still into buying from this company because of its low cost. You know, people from the middle class would be satisfied in owning one of these cars. used Car dealership (Orange County) is good to consider. Anyway, thanks for sharing your thoughts!
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